How Interest Rates Affect the Market?

Interest rates play a huge role in shaping the stock market and the economy. When rates are low, it’s easier and cheaper to borrow money for homes, cars, or expanding a business. This extra spending and growth usually help push stock prices higher too.

For investors, the return from safe options like fixed deposits or bonds drops when rates are low, so many start looking at shares for better gains. When interest rates rise, the reverse happens—borrowing slows, spending drops, and investors may shift back to safer investments. Watching rate changes gives clues about where markets and investor money might be heading next.